Value delivery network

Definition (1):

It is a network that is made up of the company, its suppliers, its distributors, and ultimately its customers who partner with each other to improve the performance of the entire system to deliver the customers value.

Definition (2):

“Value delivery network is a part of the supply chain of a company and includes all its direct participants involved in the production, distribution, marketing, customer service, etc. for a given geographical area. It is a chain of systems where after each system more a more value is added to the product or services thereby increasing its overall value for the customer.”

For example, cosmetics maker L’Oreal knows the importance of building close relationships with its extensive network of suppliers, who supply everything from polymers and fats to spray cans and packaging to production equipment and office supplies.

Use of the Term in Sentences:

  • The main motive of the value delivery network is to provide the customers with a better value.
  • The value generated through the value delivery network relies upon the relationship quality between the systems.
  • All the participants involved in the value delivery network are trying hard to offer its customers improved value.
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